April 07, 2020

How to Obtain Start-up Grind for Your Small Business

By Sona Mathews
To obtain proper funds for a small business isn’t easy nor impossible.

According to a recent study, the lack of funding is one of the biggest reasons why 95% of start-ups fail.

Why is it so?

Money is what makes the business world go around.

The means of success are long and only half of the new companies survive for five years where only a third remain in operation after 10 years.

How to Obtain Start-up Grind for Your Small Business: eAskme
How to Obtain Start-up Grind for Your Small Business: eAskme

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There is a long, difficult, yet exciting journey towards success and not everyone is born to get there.

Many entrepreneurs find themselves asking what is the simplest way to obtain financing for my start-up?

You must bear in mind that when you would require funding this might depend on your business’s
nature and size.

Your company’s position, age, performance, team, market opportunities and so forth, are crucial elements that will determine whether you’ll obtain or not founding to achieve long-term goals.

However, as soon as you’ve realized the need for finance, here are some strategies you should take into consideration.

How to Obtain Start-up Grind for Your Small Business

How to Obtain Start-up Grind for Your Small Business: eAskme

Consider Crowdfunding

Furthermore, If you think that it's too hard to run a successful campaign on crowdfunding platforms nowadays, you should know that some new automation tools, like JustEarlyBird, are real game changers and can seriously boost crowdfunding campaign on kickstarter or Indiegogo! JustEarlyBird is easy to use and it’s smooth and error-free experience will allow you to generate more orders and increase your crowdfunding campaign sales.
People know well that beginnings are tough.

No matter if you’ve just started your company or you plan to develop a new product or feature, getting into the unknown can be somewhat discouraging for young entrepreneurs.

How does crowdfunding work?

At the very moment, crowdfunding is everything that implies an online-based, money-raising concept, that many people and businesses use to kickstart their businesses and projects at the early stages.

The concept is plain but effective, all you can do is to offer people an idea to support and make it public on one of the multiple crowdfunding platforms.

You can also implement a reward-based system and come up with a small- dollar contribution opportunity for those who support and enjoy your idea.

Given the latest developments in the digital era, investing in exciting projects, products ideas and
business goals online have never been easier.

For instance, when famous sites such as Kickstarter and Indiegogo first” opened their doors”, a huge number of small businesses had great success from pulling together funding through their reach.

However, to ring a bell and turn heads on crowdfunding you must generate great buzz to get through the overall signal noise so pay attention to how you formulate and expose your ideas

Venture Capitalists

Venture capital is typically managed by a firm but sometimes can come from corporations or

Venture capitals are professionally managed funds who invest in businesses with big potential. Many would say this is where you can make the big bets.

This is maybe one of the smartest decisions so far because VCs not only provide valuable funds to
raise your business, but they also offer expertise, mentorship and evaluate a business from a
scalability and sustainability point of view.

Some would say that venture capital is even more appropriate for businesses that already generate revenues and got over the start-up phase.

Small Business Administration (SBA)

The small Business Administration is another great opportunity for those who’ve planned to develop a business.

Thus, as well as other organizations, Small Business Administration or SBA offer small business grants that are developed by minorities, women or veterans.

That’s an amazing opportunity if you fit in one of these groups, a great reason to call your local
Chamber of commerce and check if there are any local funds that you may be able to obtain.

Make sure you’re diligently read the paperwork and policies, so you won’t need to pay the money
back, or mistakenly agree for certain conditions,

Alternative Lenders

Apart from standard banks and crowdfunding, a small business can also obtain funding from
alternative lending companies.

Such companies are crucial for small businesses searching for loans that may not have the option of being financed by a traditional bank.

These lenders provide several types of business loans, extending from equipment financing to merchant cash advances.

But remember that as the rest of your lending options, alternative lending also requires a history of
paying creditors on time, tax returns, whether you had any bounced check or bankruptcies and a
concise plan to use the money.

Family and Friends Founding

The most simple and reliable way to obtain grind for your start would be to ask those around you such as friends or family.

Borrowing from friends and family is a classic way to develop a business.

Since convincing banks and investors of the value of your idea, those who always believe in your
dreams are your friends and family.

Who knows who many successful entrepreneurs financed their small business with support from
their families and friends?

If you take a stand and you’re 100% certain of your business idea and success, don’t hesitate to ask those around you for loans.

Product pre-sales

Another sure way to obtain funding would be to pre-sale products before they’re launched.

This is often an underestimated and effective strategy to raise money needed to support your business.

Huge companies like Samsung and Apples started to pre-order their products before their initial launch?

Why so?

They’ve considered it a great strategy to improve the cash flow and prepare for high consumer demands.

This might be a great way to obtain funding if you already planned and established some targets, so make sure you won’t overlook some essential steps.

Final Words:

To conclude there are many different ways you can obtain funding for your start-up and a lot of it really varies on your business track record and experience level.

However, if you want to grow fast in your niche and achieve long dreamed but realistic goals, you’ll probably need a reliable source of capital.

With a plethora of lending options, it might be overwhelming but not impossible of young entrepreneurs.

Thus, before anything, make sure you keep your finance in order, invest in good accounting software and get your plans straight.

If you want to get support, then you’ll demonstrate to lenders that your ideas are valuable.

Do you have any question to suggestion? Ask or share via comments.

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